$ADA is trading close to the $0.40 level, a zone that has emerged as a key short-term support while price action remains contained within a descending channel. Daily charts suggest selling pressure is controlled rather than impulsive, giving ADA room to attempt a stabilization phase.
Despite this, longer-term signals remain cautious. Analysts note that the weekly SuperTrend indicator turned bearish near the $1.00 region earlier, a move that historically preceded extended declines. With ADA still trading below major resistance levels, downside risks cannot be ignored.
On the positive side, on-chain data is showing improvement. Whale activity has picked up on the buy side, and spot market sentiment appears to be gradually shifting. Derivatives data supports this view, with funding rates turning positive and the long-to-short ratio climbing to monthly highs.
If support near $0.40 holds, ADA could attempt a recovery toward the $0.50–$0.68 range. However, confirmation will depend on sustained volume and a break above near-term resistance.
